Editor's Note:

Lack of news and economic data led to a quiet session on Monday. Most of the market drifted sideways with a little bit of profit taking following last week's big gains.

CNQR was triggered. We have closed our MON trade.


Current Portfolio:


CALL Play Updates

Concur Technologies - CNQR - close: 70.22 change: +0.44

Stop Loss: 68.40
Target(s): 74.50
Current Option Gain/Loss: - 9.0%
Time Frame: exit prior to the late January earnings report
New Positions: see below

Comments:
01/07/13: CNQR kept the rally alive and broke through resistance near $70.00. Our trigger to buy calls was hit at $70.25. I would still consider new positions now. Our short-term target is $74.50. We do not want to hold over the late January earnings report. FYI: The Point & Figure chart for CNQR is bullish with an $81 target.

- Suggested Positions -

Long Feb $70 call (CNQR1316B70) entry $3.30

Entry on January 07 at $70.25
Average Daily Volume = 462 thousand
Listed on January 05, 2012


Canadian Pacific Railway - CP - close: 107.28 change: -0.04

Stop Loss: 103.75
Target(s): 109.00
Current Option Gain/Loss: +128.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/07/13: Monday proved to be a forgettable session for CP. The stock churned sideways in a narrow range. There is no change from my prior comments. Readers may want to start taking profits now.

Our plan was to use small positions to limit our risk.

- Suggested *SMALL* Positions -

Long Jan $105 call (CP1319a105) entry $1.25

01/05/13 new stop loss @ 103.75
01/02/13 new stop loss @ 101.75
12/21/12 trade opened on gap down at $101.46

Entry on December 21 at $101.46
Average Daily Volume = 961 thousand
Listed on December 20, 2012


OpenTable, Inc. - OPEN - close: 52.91 change: -0.19

Stop Loss: 49.40
Target(s): 58.00
Current Option Gain/Loss: + 0.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/07/13: I didn't see any news to explain the spike higher in OPEN this morning. Shares hit $66.30 before paring its gains and eventually closing in negative territory. If you were waiting for a dip near $52.00 you got it this afternoon.

Earlier Comments:
OPEN could see a short squeeze. The most recent data listed short interest at 42% of the very small 19.4 million share float. FYI: The Point & Figure chart for OPEN is bullish with a $73 target.

- Suggested Positions -

Long Feb $55 call (OPEN1316B55) entry $2.54

Entry on January 04 at $52.23
Average Daily Volume = 361 thousand
Listed on January 03, 2012


iShares Silver ETF - SLV - close: 29.18 change: -0.06

Stop Loss: 27.45
Target(s): 33.50
Current Option Gain/Loss: - 8.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/07/13: The U.S. dollar turned lower today but gold and silver prices failed to rally on its weakness. The SLV essentially drifted sideways today. Readers might want to wait for a new close above $29.50 or even $30.00 before considering new bullish positions. More cautious traders might want to raise their stop loss.

- Suggested Positions -

Long March $30 call (SLV1316c30) entry $0.95

Entry on December 31 at $29.07
Average Daily Volume = 11.6 million
Listed on December 29, 2012


Snap-on Inc - SNA - close: 79.65 change: -0.32

Stop Loss: 78.90
Target(s): 84.50
Current Option Gain/Loss: - 56.2%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
01/07/13: SNA spent Monday churning sideways underneath the $80.00 level. Odds seem to be growing that SNA is going to fill the gap and dip toward $79.00. On a short-term basis I would want to see a close above $80.50 before considering new bullish positions.

Earlier Comments:
I consider this a short-term trade. It will probably only last a few days. Our target is $84.50. I would use small positions!

- Suggested Positions - (Keep positions small)

Long Feb $85 call (SNA1316B85) entry $0.80

Entry on January 03 at $80.90
Average Daily Volume = 239 thousand
Listed on January 02, 2012


Sohu.com - SOHU - close: 47.82 change: -0.08

Stop Loss: 45.75
Target(s): 49.25
Current Option Gain/Loss: +31.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/07/13: SOHU didn't move much. The stock hovered just under the $48.00 level most of the session. I am not suggesting new positions.

Earlier Comments:
SOHU can be a volatile stock so we want to limit our position size to reduce our risk. If triggered our target is $49.75. More aggressive traders may want to aim higher since SOHU seems to have built a decent bottom over the last several months. With enough time you could aim for the $55-60 zone. FYI: The Point & Figure chart for SOHU is bullish with a $66 target.

- Suggested Positions -

Long Feb $47.50 call (SOHU1316b47.5) entry $2.05

01/05/13 new stop loss @ 45.75
01/02/13 adjust exit down to $49.25
SOHU almost hit our target at $49.75 but the high today was only $49.70. We don't want that to happen again.
12/29/12 new stop loss @ 43.45

Entry on December 27 at $45.20
Average Daily Volume = 606 thousand
Listed on December 26, 2012


Trimble Navigation - TRMB - close: 61.73 change: -0.21

Stop Loss: 59.75
Target(s): 64.75
Current Option Gain/Loss: - 8.8%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
01/07/13: TRMB spent most of the day chopping sideways between $61.50 and $62.50. I suspect we could see shares dip back toward the $60.00 level. Readers could wait for a dip or a bounce near $60 as our next entry point.

We are aiming for $64.75 but more aggressive traders could aim higher. We do want to keep our position size small to limit our risk.

- Suggested Positions - (Keep positions small)

Long Jan $60 call (TRMB1319a60) entry $2.25

Entry on January 03 at $61.32
Average Daily Volume = 750 thousand
Listed on January 02, 2012


The Travelers Companies - TRV - close: 73.06 change: -1.00

Stop Loss: 72.85
Target(s): 79.00
Current Option Gain/Loss: Unopened
Time Frame: exit prior to earnings on Jan. 22nd
New Positions: Yes, see below

Comments:
01/07/13: TRV displayed relative weakness today with a -1.35% decline. Shares saw consistent selling for the 30 minutes of trading. Big picture nothing has changed for us. We are waiting for a bullish breakout.

Earlier Comments:
The stock's long-term trend is up and now TRV is poised to breakout to new highs. I am suggesting a trigger to buy calls at $74.60. More conservative traders may want to wait for a breakout past the $75.00 level instead. If triggered our target is $79.00 but we may have to abandon this play early to exit prior to earnings.

FYI: The Point & Figure chart for TRV is bullish with an $82 target. It's also poised to produce a brand new triple-top breakout buy signal soon.

Trigger @ 74.60

- Suggested Positions -

buy the Feb $75 call (TRV1316B75)

Entry on January xx at $ xx.xx
Average Daily Volume = 2.3 million
Listed on January 05, 2012


PUT Play Updates


Currently we do not have any active put trades.



CLOSED BULLISH PLAYS

Monsanto Co. - MON - close: 95.94 change: -0.17

Stop Loss: 94.40
Target(s): 99.50
Current Option Gain/Loss: + 72.8%
Time Frame: exit prior to Jan 8th.
New Positions: see below

Comments:
01/07/13: MON saw a little volatility this morning but bounced back to spend the rest of the day hovering just under the $96.00 level. Our plan was to exit today at the closing bell to avoid holding over the earnings report.

Earlier Comments:
Our plan was to keep our position size small.

*Small Positions*

- Suggested Positions -

2013 Jan $95 call (MON1319a95) entry $1.25 exit $2.16 (+72.8%)

01/07/13 planned exit at the closing bell
01/05/13 prepare to exit on Monday at the close, new stop loss @ 94.40
01/02/13 new stop loss @ 92.45
12/24/12 triggered @ 93.05

chart:

Entry on December 24 at $93.05
Average Daily Volume = 2.2 million
Listed on December 19, 2012